It’s been a long and bumpy road to the Federal Reserve’s first interest rate cut in more than four years — a moment that could prove decisive to the finances of millions of Americans.
The Fed on Wednesday lowered its benchmark rate by 0.50 percentage points, a critical pivot after the central bank introduced a flurry of rate hikes to tame the pandemic’s high inflation.
The Fed’s first rate reduction since March 2020 will provide some welcome relief for consumers who are in the market for a home or auto purchase, as well as for those carrying pricey credit card debt. The policy shift is also expected to kick off a series of rate reductions later this year and into 2025, which could have lasting implications on mortgage and auto loan rates, but could also have a downside of shaving the relatively high returns recently enjoyed by savers.
“It’s been a long marathon — the Fed feels it’s time to lower interest rates again,” Sara Rathner,…
